This bill establishes a one-year moratorium on issuing permits for new data centers in Minnesota, preventing their construction until a comprehensive report is completed. The Public Utility Commission is required to submit this report by July 1, 2027, or January 1, 2028, if an extension is granted, to state legislative committees. The report must analyze energy, water, and materials usage; environmental and cultural impacts on Tribal Nations; local and state economic effects; and suitable locations that minimize disruption to communities and infrastructure. Additionally, the commission must consult with Tribal governments and hire a third-party contractor who has no financial ties to data center developers to ensure the report's objectivity.
This bill establishes a one-year moratorium on issuing permits for new data centers in Minnesota, preventing state and local governments from approving such projects until a comprehensive report is completed. The Public Utility Commission must submit this report by July 1, 2027, or January 1, 2028 if extended, which will assess energy, water, and materials usage, environmental impacts, economic effects, and suitable locations for data centers. The report must also analyze impacts on Tribal Nations, include public feedback, and be prepared by an independent contractor with no conflicts of interest. The bill directly affects data center developers, local governments, and the Public Utility Commission, requiring them to wait for the report before approving new facilities.
SF 3444 excludes qualifying data centers from Minnesota utilities' gross annual retail energy sales calculations for energy conservation programs. The bill defines a "data center" as a facility primarily processing digital information and adds it to the list of excluded sales in Minnesota Statutes §216B.2402. To qualify for exclusion, a data center must provide a signed verification letter and impose peak electrical demand equal to or greater than 40% of the utility's system peak demand. This change directly affects large data centers meeting these criteria and alters how utilities calculate energy sales for conservation programs.
HF 252 increases the customer threshold for small natural gas utilities to qualify for exemption from Minnesota Public Utilities Commission (PUC) regulation, raising it from 650 to 2,500 customers served within a municipality. This change directly affects small natural gas utilities serving 2,500 or fewer customers, allowing them to operate without direct PUC oversight for their municipal service. However, these utilities must still file rate changes with the PUC for services outside municipal borders and comply with cold weather disconnection policies. The bill maintains the existing 5,000 total customer cap across all service areas and requires annual submission of municipally approved rates to the PUC.
This bill prohibits local governments (cities, counties, etc.) from banning natural gas or propane hookups to buildings. It stops political subdivisions from adopting rules that prevent utilities from connecting, reconnecting, or supplying gas/propane to any building. The law directly affects local governments that might have considered restricting gas access and ensures utilities can provide these services without local barriers. It takes effect the day after enactment.
